Choose location wisely when considering Stateside expansion, say US experts

“Chosen your location wisely” was the key message from US business experts to firms with Stateside expansion plans, during an event hosted by Greater Birmingham Transatlantic Chamber of Commerce, writes Dan Harrison.

Speaking at HSBC UK’s headquarters in Birmingham city centre, leaders from the U.S Embassy in the UK and Midlands-based hot-holding manufacturer Flexeserve shared their top tips for Greater Birmingham businesses who are considering setting up across the Atlantic.

And delegates were told that choosing the right location for customers, suppliers and the workforce should override any incentives on offer elsewhere.

Flexeserve, a patron of the Transatlantic Chamber, opened a US headquarters near Dallas, Texas last year.

Global CEO Jamie Joyce said the firm chosen Texas due to its proximity to customers and competitors – despite being offering greater incentives by states such as Florida and Ohio.

He said: “Lots of states offered us more incentives than Texas did - there was much more coming from the likes of Florida and Ohio.

“But for us, it came down to the location for our customers and our competitors.”

And with Flexeserve also eyeing the Latin America market, Jamie said Texas’ proximity to Mexico was another factor.

He added: “I know there’s some good tax incentives if you ship into Florida first and then into Latin America and that was one of the things we toyed with.

“But the proximity of Texas to Mexico, looking to the future, was another reason.”

The importance of location choice was reinforced by Laurie Farris, Minister Counselor for Commercial Service at the U.S Embassy, who said: “Start by focusing on picking a few locations that have clusters of your industry.

“One of my first recommendations is to not try to go someplace where none of your competitors are because that's not where you're going to find the workforce.

“I think, whether it's in the US or in the UK, getting the right people, having the workforce with the right skills, the right background, education and the right numbers is getting more difficult.

“You could definitely shop for incentives. However, incentives will sooner or later wear off - they're not going to last forever.

“Incentives are great to get you up and running because I think this is obviously the hardest part, but it shouldn’t be the thing that makes the core decision.”

Following introductions from the Chamber’s head of international divisions Sian Timmins, HSBC UK’s regional director of Business Banking, Roger Pratt and regional director of international subsidiary banking Marc Gorton, Laurie Farris provided an overview of the opportunities available to firms who are interested in stepping up their US investment plans.

She highlighted the forthcoming SelectUSA Investment Summit – the highest-profile event dedicated to promoting foreign direct investment into the US – taking place in Maryland from 23-26 June.

Flexeserve’s global CEO and Jamie Joyce and customer service director Warwick Wakefield then gave a detailed overview of the firm’s transatlantic growth – from working with a distributor to supply its innovative hot food-to-go technology to the US market to setting up a dedicated American headquarters with support from key partners including the Transatlantic Chamber, the U.S Embassy and the British-American Business Council.

The speakers then took part in a Q&A session hosted by Transatlantic Chamber president James Tait.

During the Q&A, Marc Gorton praised Flexeserve’s “global mission statement and mission”, which enables the business to succeed on both sides of the Atlantic.

He said: “That global mission statement and that global vision is absolutely key. 

“If you are running a business 3,000 or 4,000 or 5,000 miles away, having somebody on the other side of the Atlantic who understands the business, understands the vision, how you got there and where you want to go to is key, because there will be friction.

“Having that mission statement that keeps you together is really important, and making sure that both sides understand the different challenges.”

Pictured: From left - Warwick Wakefield, Roger Pratt, Sian Timmins, Jamie Joyce, Laurie Farris, Marc Gorton and James Tait